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Supreme Court of India 2022-04-26 allowed

Asset Reconstruction Co. (India) Ltd vs Chief Controlling Revenue Authority

Bench: 2 — V. Ramasubramanian

In Brief

The Oriental Bank of Commerce assigned defaulted loan assets to Asset Reconstruction Company (India) Ltd under a deed containing a Power of Attorney in Schedule 3. The deed was registered and charged to stamp duty as a conveyance under Article 20(a) at a reduced rate per Government notification. The tax authority later claimed additional duty was owed under Article 45(f) for the PoA. The Supreme Court allowed the appeal, holding that once a single instrument is correctly charged under one provision and duty is collected, it cannot be split and subjected to additional duty under another provision merely due to notification-based reductions. The PoA was incidental to the deed, and the power of sale derives from the Securization Act, not an independent instrument.

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Stamp Duty Asset Reconstruction Securitization Power of Attorney Taxation

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